Digital Metal Exchange (DMX) is an online platform for investing and trading in metal-backed digital assets.
DMX opens a new asset class for trade: digital assets backed by in-ground metal and priced according to a proprietary discount model. With our public beta (testing period) we will be open for business to accredited investors and investment professionals.
At launch, the Digital Metal Exchange will allow institutional and sophisticated investors to invest in pre-production metals at significant discounts. With an active secondary market and continuous reporting our system is a level playing field, built on transparency.
DMX brings a simple and transparent funding mechanism to early-stage mines. It lowers the costs of funding, does not dilute shareholders and has lower on-going costs than listing or other funding mechanisms.
On completing our KYC process, investors and traders can inspect available metals-based assets. Each investable project contains detailed information on the mine, resource, budgets and a discount factor – all the information you would normally expect in a listing prospectus. DMX will add a range of metal-backed digital assets over time, giving investors and traders access to a range of novel risk classes. The exchange operates a peer to peer model, so there is no requirement to trade through an intermediary.
Online trading in options and forex exploded when the right tools became available. We expect the same thing to happen with digital metal assets. To make this happen, we are bringing one of the World’s largest and oldest industries into the digital era. The metals market is much broader in scope than the contracts currently offered by the major exchanges. Many billions worth of pre-production metals, inventory metals, fabricated and scrap metals are transacted in opaque, inaccessible private transactions. Metals are a $2.7 trillion per annum market, with the derivatives markets at least 40x this size. Ultimately, we want a great range of metals to be available for investment and trade. In particular, we will very quickly include emerging technology metals and rare earths which are currently only traded OTC (over-the-counter).
The Digital Metal Exchange is entering the field at a moment when the demand for rare earths and non-ferrous metals is at a high point and technological innovation continues to increase demand. For at least four and a half millennia man has been mining the Earth’s metal ores and turning them into objects of value. There is an unbroken line of heritage in mining exploration which goes back to the first prehistoric explorers of the Bronze Age. In our time rapid technological advances mean that industry needs ever more reliable sources of a great variety of metals. DMX is aiming to contribute substantially in this respect.
DMX is blockchain-based and all assets traded are smart contract driven, so there is immediate settlement and full transparency. As a fundamental security measure designed into the system from the ground up, all digital assets are kept off-exchange in tier-1, Swiss-based custody storage. The technology of our trading engine has been tested over a long time, ensuring that the heart of the system is a low-latency, high-throughput trading environment.
We are headquartered in Melbourne, Australia. Our digital custodians are based in Switzerland, so all identity (KYC/AML) information is handled in accordance with FINMA regulation. Our exchange operates under regulatory exemptions and is currently in the process of applying for a Financial Markets License in Australia. DMX is not a cryptocurrency exchange, and we are not planning to hold an ICO.
The Digital Metal Exchange is nearing its public launch and this is just a general introduction designed to answer some of the basic questions. We welcome your enquiries.